Retail Giant Prepares for Chapter 11 Store Closures as It Seeks Alternative Buyers
Big Lots, the beloved discount retailer headquartered in Columbus, Ohio, announced on Thursday that it will begin “Going Out of Business” (GOB) sales at all its remaining locations. This development comes as the company faces an uncertain future, grappling with the fallout from its Chapter 11 bankruptcy filing earlier this year.
A Retail Giant in Transition
The announcement also revealed that Big Lots no longer anticipates completing its previously announced asset purchase agreement with Nexus Capital Management. Instead, the company is exploring alternative sale options with Nexus or another prospective buyer.
In a statement, Big Lots’ President and CEO Bruce Thorn acknowledged the challenging situation, saying, “We all have worked extremely hard and have taken every step to complete a going concern sale. While we remain hopeful that we can close an alternative going concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the GOB process.”
Bankruptcy and Store Closures
Big Lots filed for Chapter 11 bankruptcy in September, initiating a court-supervised sale of “substantially all” its assets. At the time, the company’s board deemed the sale process the best way to maximize value and ensure ongoing operations.
Initially, Big Lots planned to shutter 35–40 stores, but that number quickly escalated into the hundreds. By October, the retailer announced the closure of an additional 50 stores, as it worked to navigate the financial challenges.
The Road Ahead
With more than 1,400 stores across the U.S. and over 30,000 employees, Big Lots’ potential closure represents a significant loss to communities nationwide. As the GOB sales commence, the company hopes to wrap up the sale of its assets by early January 2025.
For Big Lots, the future remains uncertain as it races against time to secure a viable buyer, preserve its legacy, and protect the value of its estate. In the meantime, customers can take advantage of steep discounts at GOB sales across the retailer’s remaining locations.
As the retail landscape continues to evolve, Big Lots’ journey underscores the challenges faced by brick-and-mortar stores in adapting to changing consumer habits and economic pressures.
